Documenting finance

CBK Increases Mobile Money Transaction Limits and Wallet Balance

CBK Increases Mobile Money Transaction Limits and Wallet Balance

Transaction Limits Increased

Mobile money users in Kenya can now transact larger amounts daily.

The Central Bank of Kenya (CBK) has revised the daily transaction limit from Ksh 150,000 to Ksh 250,000. Similarly, the mobile wallet limit has been elevated from Ksh 300,000 to Ksh 500,000.

These adjustments aim to facilitate bigger transactions, reflecting the growing need for higher-value mobile money operations.

Impact on financial practices

  • Convenience: The revised limits enable smoother, more substantial transactions for users.
  • Financial Inclusion: A larger wallet size brings more financial services within reach for many Kenyans.
  • Digital Government Payments: The adjustments support the government’s initiative to move towards digital payments.
  • Business Growth: Increased limits could translate to expanded transactional capabilities for businesses.

Risk management

Payment Service Providers (PSPs) have been directed to implement robust security measures to tackle money laundering, terrorism financing, and fraud.

These protocols ensure risk mitigation amid the convenience of increased limits.

Review of PSP performance

  • Increased usage: Statistics reflect a surge in mobile money transactions following previous limit increments during the pandemic.
  • Customer onboarding: The number of active mobile money customers has grown substantially.
  • Business transactions: A considerable rise in business-related transactions via mobile money indicates a positive trend in digital financial adoption.

Key dates and providers

  • Implementation date: These changes are scheduled to take effect starting August 15, 2023.
  • Service providers: The new limits will be harmonious across major Payment Service Providers including but not limited to Safaricom’s M-Pesa, T-Kash and Airtel Money.

Pricing of transactions

Transactions up to the new limit of Ksh 250,000 will continue to incur charges as per the existing rate for transactions up to Ksh 150,000. This ensures cost-effectiveness alongside improved transaction capacity.

Historical significance

The hike in limits is a continuation of the CBK’s approach to enhance mobile money services observed since the onset of the COVID-19 pandemic.

The CBK’s data suggested notable growth in the sector post-increment of the limits back in 2020. It is expected that this pattern of growth will persist with the new limits in place.

YearOld Daily Limit (Ksh)New Daily Limit (Ksh)
2020 – 202370,000150,000
2023 – 2024150,000250,000

Remember, with the expanded transactional space, staying vigilant against operational risks remains paramount. The CBK emphasizes continual cybersecurity enhancement to safeguard the integrity of mobile money services.

Remember, these changes reflect the continued evolution of the financial landscape in Kenya, aiming to keep pace with technology and the needs of the population.

Moneyspace Ke
Moneyspace Ke
We understand the hustle of everyday Kenyans – the drive to do more, save more, and be more, all while not earning just enough. At Money.ke, we aim to provide reliable information to help you build a scalable sidehustle business. Subscribe to find insights on financial products, practical saving tips, and viable business ideas in Kenya. 🇰🇪🤝📈.
Moneyspace Ke
Moneyspace Ke
We understand the hustle of everyday Kenyans – the drive to do more, save more, and be more, all while not earning just enough. At Money.ke, we aim to provide reliable information to help you build a scalable sidehustle business. Subscribe to find insights on financial products, practical saving tips, and viable business ideas in Kenya. 🇰🇪🤝📈.